People nowadays are more inclined towards pursuing higher education, be it from universities in India or abroad. However, in a world with a constantly depreciating value of the currency, the cost of education has become higher. As a parent looking after their children’s needs, money should be the last thing between you and your children’s dreams. 

The thought of Education Loans can be daunting, but we will try to explore more ways to make it easier for you to opt for one. An HDFC Education Loan can cost you less as you recognize the options at your disposal. 

How to make the Education Loan cost you less?

Here are some ways to decrease the burden of repaying the Education Loan: 

Make Education Loans Cost you Less

Go for a loan with Collateral 

If you are an owner of a residential property or have an investment in Fixed Deposits, it is preferable to decide on a loan with collateral. A loan with collateral comes with a lower interest rate and decreased gross repayment cost of the loan.  

  Complete EMI payment throughout the Moratorium Period 

After the completion of the course, Student Loans have a period of 12 months which is known as the Moratorium Period. This is the time when only the interest part of the loan can be paid. However, you can pick the option of repaying the full amount in EMI during this period. This decreases the total loan amount straight from the first.  

Select a shorter tenure 

Loans are available for a term up to 14 years. Longer tenures can decrease your monthly EMIs but it increases the overall interest rate notably. Therefore, it is always advisable to go for shorter terms if and only if one can afford to pay back faster. 

Gain the tax benefit under Section 80(E) 

The tax deduction segment under Section 80(E) of the IT Act entitles you to a discount in the tax of an Education Loan. You are even permitted to reduce the complete interest amount in a financial year that is paid against an Education Loan. This is applicable for higher Education Loan. 


Education is an integral part of building a successful career in which Education Loans play a pivotal role. Education at premium institutions around the world can be expensive. Therefore, intending to make the entire process seamless, HDFC Education Loan is here to help you pave the way for a brighter future.

Disclaimer: For detailed Terms and Conditions, visit; Toll Free: 1800 266 3345.